E-commerce in the Global Market - Essay Example

Electronic commerce is the use of technology to perform business process activities that entail the exchange of information, products, and services across an electronic network at any stage in the supply chain (Pankaj, 2005).

The emergence has been facilitated by the evolution of the internet, communication infrastructures, and computer systems. The increase in internet content like text messaging and multimedia and support services such as online catalogs, security systems, and payment settlement systems have also supported the growth in e-commerce (Pankaj, 2005). Many global organizations have adopted e-commerce to increase their market share, create new online subsidiaries, attain a competitive edge in the market, reduce the entry barriers in the global market and reduce the costs of doing business.

E-commerce has evolved from a transaction-level business to a relationship-based business that is characterized by two-way communications with full integration of internet capabilities into the business (Pankaj, 2005). E-commerce offers several benefits to business organizations, customers, and suppliers. For instance, e-commerce will reduce the costs of creating, processing, distributing, and storing goods and services (Pankaj, 2005). Business organizations can reduce business overheads involved in selling over the supply chain and the time spent between the outlay of capital and the time the goods and services are received.

E-commerce will create a competitive edge for business organizations and enhance the business reputation through improved, new-found business opportunities, increased flexibility, enhanced customer service, and reduced supply chain time (Laudon & Traver, 2010). Customers will benefit from increased convenience in shopping since they can access goods and services 24 hours a day in the comfort of their location (Pankaj, 2005). Customers can easily access recent product information within a short period and access a wide variety of commodities.

E-commerce had facilitated competition, which has led to new innovative products and discounts for customers. Customers can interact with each other over the electronic community and exchange ideas and experiences thus leading to better customer service from the suppliers (Pankaj, 2005). The sellers have been able to overcome structural, time, and location barriers in reaching their target markets. On the other hand, society has been able to benefit from e-commerce through easy access to government services such as health services, e-learning, and reduction in the need for travelling and pollution in society which is associated with conventional commerce (Laudon & Traver, 2010).